Canva To Hike Subscription Prices Up To 300% Amid AI Push (acs.org.au) 32
Canva, a popular online design platform, plans to significantly increase prices for some of its business subscriptions next year, citing the addition of generative AI features. The company's Teams subscription, which supports multiple users, will see price hikes of up to 300% in some regions. From a report: Subscribers to Canva Teams, which is targeted at businesses with several users, were emailed late last week to notify them of the price increase, which amounts to a three-times jump. A spokesperson for Canva said the price rise was due in part to the introduction of a number of new features on the Canva platform, including many powered by AI and generative AI.
need AI? (Score:5, Insightful)
Did they ask paying users if they need those AI features? Or the price increase is just to cover their recent purchase of Affinity?
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(Whoa. Just realized that my sig, which I have used forever, gives new meaning to the AI craze)
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the number i have heard from rando ai peddlers is 400% :)
Re:need AI? (Score:5, Interesting)
Or the price increase is just to cover their recent purchase of Affinity?
Companies don't raise prices to cover sunk costs. That makes no sense.
Companies raise prices because they expect the increased unit revenue will compensate for the loss of customers.
In this case, Canva is probably right. Even if they lose 75% of their customers, profits will increase.
They'll likely lose far fewer than that. Many customers are not very price-sensitive.
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Companies don't raise prices to cover sunk costs. That makes no sense.
Sony just bumped the price of playstations in Japan to cover concords flop.
Re:need AI? (Score:4, Insightful)
Sony just bumped the price of playstations in Japan to cover concords flop.
No. Sony bumped the price because they think the profit will increase with a higher unit price.
With or without the Concord, Sony sets prices to maximize profit. That's what companies do.
Often, a lower price is more profitable, such as in a competitive price-sensitive market like groceries. Walmart has the lowest prices and the highest profit.
Sometimes a higher price is more profitable, such as LVMH selling Giffen goods [wikipedia.org].
But sunk costs are always irrelevant.
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such as LVMH selling Giffen goods [wikipedia.org].
Sorry. I meant Veblen goods [wikipedia.org].
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With or without the Concord, Sony sets prices to maximize profit. That's what companies do.
Indeed. A simple fact too often intentionally overlooked.
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It literally lasted a fortnight, there's got to be some irony in that.
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it's less about maximising profit and more about minimising losses.
Those are the same thing.
Going from 1 to 2 is an increase.
Going from -2 to -1 is also an increase.
In either case, sunk costs are irrelevant.
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No, they bumped the price in Japan because they could. Xbox is basically non-existent in Japan for many reasons. So it's Switch or PlayStation. I'm sure Sony jacking the price from $500 to $800 has nothing to do with the fact they can and the Japanese public will put up with it.
Concord failing is just a symptom of the Sony not concentrating on games their customers are wanting to play. But given Sony is "winning" for the past couple
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Hence the inflation on groceries.
In 2020, the profit margin on groceries was 2%.
Since then, the price of groceries has gone up 25%.
Today, the profit margin on groceries is 2%.
Reagan's trickle down theory works!
The inflation of the last few years was caused by the demand-side stimulus of QE and Covid relief.
That is the opposite of Reagan's supply-side "trickle-down" economics.
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2% [...] 2%
False. Tyson Foods, for example, doubled profits from 2021-2022. Food companies are enjoying record [vox.com] profits [forbes.com] while unit volumes are shrinking.
The inflation of the last few years was caused by the demand-side stimulus of QE and Covid relief.
False. Most of the so-called inflation can be attributed to price gouging [fortune.com]. Profits are skyrocketing while demand plummets.
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Tyson Foods, for example, doubled profits from 2021-2022.
1. You're cherry-picking. Tyson Foods is not representative of the entire grocery sector.
2. You're looking at "earnings per share". Tyson saw much higher EPS in 2022 because their share price declined. The meaningful figure is earnings as a percent of revenue.
price gouging
If by "price-gouging" you mean setting prices to maximize profit, then yes, that happens every day and has since money was invented 10,000 years ago. I've been in hundreds of meetings with business people, and never, not once, did any of them say we sh
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1. You're cherry-picking. Tyson Foods is not representative of the entire grocery sector.
False I'm very obviously not cherry-picking. The links I provided prove that.
You're denying reality.
Firing all those people isn't cheap you know (Score:2)
Also, since you've invested your brain into our software, and you're a big dummy that couldn't think your way out of wet paper bag...we're raising prices by
Just make sure not to think for yourself.
Doing things is hard. We're here to help.
Please don't fsck with Affinity... (Score:3)
They said they'd not fsck with them....make the subscription, etc.....I hope they keep their word on this.
The Affinity tools are the best alternative to Adobe products out there....please don't fuck with a good thing.
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If you don't want the AI stuff (Score:1)
If you don't want the AI stuff you just pay the old price, right?
Shit product (Score:4, Insightful)
That shit should have just been a PDF! Hell, a plain text file would be preferable. But no, we had to slog through the "canva" (the studio had drunk the KoolAid and started using it as a noun!). For one particularly annoying one I took screenshots, bundled them as a PDF, ran OCR, and then looked it. I'm convinced that actually saved me time, and certainly aggravation.
So, seriously, fuck those guys and their product. Maybe the price hike will convince their deluded userbase to switch to (free, simpler, established) products/solutions that actually work.
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Most of this stuff is supposed to be a substitute for having an actual artist with actual talent. The interesting part is that they don't cost all that much - more talent out there than there is work for them.
WTF? (Score:3)
So, AI let's them provide a service at much reduced expense, so they have to hike prices to compensate?
Either gall was on sale in bulk or somebody flipped a sign doing the math.
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Also, can we get a nice little AI for my phone that doesn't constantly add apostrophes and pluralizations I don't actually want?
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So, AI let's them provide a service at much reduced expense, so they have to hike prices to compensate?
As funny as that is, companies don't "hike prices to compensate". Companies always set prices in such a way as to maximize profits. Sometimes that means raising prices. Sometimes that means lowering prices.
Sure, they'll make all sorts of excuses for why they're raising prices, but that's just public relations. Canva determined that raising prices 300% would increase profits, the higher price more than making up for the lost sales. That's the only reason they're raising prices. Nothing else matters.
The s
50% of that statement is true (Score:2)
do the math (Score:1)
300%? (Score:2)